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| The Tax Publishers2020 TaxPub(DT) 3024 (Del-Trib) INCOME TAX ACT, 1961
Section 92C
As regards international transactions with AEs, once APA has been concluded in the hands of assessee then same approach/basis was to be adopted for concerned assessment year. Accordingly, TPO was directed to follow the approach/basis of APA applied for subsequent year to the concerned assessment year.
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Transfer pricing - Determination of ALP - Assessee having entered into advance pricing agreement (APA) -
Assessee rendered sales support services to AE abroad. TPO suggested ALP adjustment. Assessee pleaded that facts of case and applicable law remain identical during period under consideration as in year relating to which Advance Pricing Agreement 'APA' was entered into approach, basis adopted and conclusion reached in APA years deserved to be consistently applied to year under consideration especially when in subsequent years, 'APA' proceedings had been accepted. Held: Once APA has been concluded in the hands of assessee then same approach/basis was to be adopted for concerned assessment year. Accordingly, TPO was directed to follow the approach/basis of APA applied for subsequent year to the concerned assessment year.
Applied:Honeywell Automation India Ltd. v. Asstt. CIT, Circle-7, Pune in ITA No. 359/Pune/2013 vide Order, dated 2-11-2018 : 2018 TaxPub(DT) 6940 (Pune-Trib) and Ranbaxy Laboratories Ltd. v. Asstt. CIT ITA No. 196/Del/2013 vide Order, dated 25-4-2016.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11
INCOME TAX ACT, 1961
Section 143(3)
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